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‘Strong’ global growth predicted this quarter – report
February 14, 2017, 3:54 pm

Economic sentiment in emerging economies and Greece, Italy and Portugal is unfavorable [Image: SPIEF]

A World Economic Survey conducted by the Munich-based Ifo economic research institute forecasts strong global growth in the first quarter of the year.

The report highlighted particular growth in Japan and Britain.

It said that in Europe, the economic recovery is gathering impetus.

“Expectations are far more positive than last quarter. The experts surveyed also assessed their current economic situation more favorably,” the report said.

While economic sentiment in the euro area was favorable, Greece, Italy and Portugal lagged far behind.

But in emerging markets, it was a grim picture.

“The economic climate for emerging markets and developing economies remained Sentiment in the Middle East and North Africa, Sub-Saharan Africa and CIS countries firmed, but remains weak. In Turkey, by contrast, the indicator plunged,” the report said.

The Ifo report appears to run in tandem with an International Monetary Fund forecast published three weeks ago which finds that global growth in 2016 remained at 3.1 but is projected to rise to 3.4 per cent in 2017, and 3.6 per cent in 2018 barring any economic upheaval possibly brought on by the new US administration.

The IMF revised upward its assessment of the UK economy by 0.4 per cent to 1.5 in 2016 on the back of higher manufacturing and exports.

But it was bad news for many emerging economies in the Middle East, North Africa, Afghanistan and Pakistan region.

Saudia Arabia, for example, will see only 0.4 per cent growth in 2017 compared to 1.4 per cent in 2016, the IMF said. But it is expected to weather the storm and bounce back to 2.3 per cent in 2018.

On Monday, Japan’s Cabinet Office released figures which showed that the economy expanded at one per cent in 2016 on stronger exports, but at a slightly lower pace than had been anticipated.

The BRICS Post with inputs from Agencies

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